In currency trading the Asian session today (25-02), looking Yen has strengthened against the U.S. Dollar. Pair USD/JPY currently moving in the range of 89.55.
Last night, Bernanke said that interest rates the Fed is not going to be changed in the near future. This reduces the investors’ expectations of an increase in FFR (Fed Funds Rate), where dinaikkannya discount rate by the Fed earlier has increased the expectations of investors.
In addition to comments from Bernanke, Asian stock markets look today as well under pressure, so the yen currency look more attractive. But again need to be reminded that Japan is still in the threat of deflation, so that an overly strong yen will not be interested by the Japanese government. If the yen continues to strengthen, 87.00 estimated potential level is reached, but more powerful than those levels feared could invite government intervention.
USD/JPY likely to weaken to as low as 88.90 if past support in the 89.30 level. Strengthening U.S. Dollar against the Yen may occur if the resistance through the 90.35 level to the 90.85 level.
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